(call me if you do not understand the math).

REITS have performed well over the last 10 years but several are in serious trouble right now especially office and retail so you need to be careful and do your homework.

Your 401K is invested - and hopefully earning a good return - so why remove an investable asset to hold leveraged funds for some unforeseen whatever.Do the math...the answer is pretty clear.  

It seems the majority of the opinions here are similar to Joes, and the math works in their favor.

When Genius Failed: The Rise and Fall of Long-Term Capital Management - By Roger LowensteinI think there's a good lesson for all of us in being humble, understanding the limitations of own brilliance and prowess, understanding the limitations of "overly-calculating" prices and risks that all the data and math in the world cannot account for (no offense "big data" folk and economic statisticians)!

You are a man who has done your homework and has clearly defined goals. 

ARV of home #1= $120,000ARV of home #2= $90,000 Do the math! 

thank you guys but what if I'm not good in math?

Again it's simple math that you have more doors generating more revenue for the same or lower acquisition cost.Multifamily are much harder to find than single family  in the area you're looking and really all around Houston.

I do my own math and I talk to the tenants, once under contract.